Care Inc., has two divisions that operate independently of one another. The financial data for the year 2015 reported the following results:

North South

Sales $6,000,000 $5,000,000

Operating income 1,900,000 1,800,000

Taxable income 1,500,000 800,000

Investment 14,000,000 11,000,000

The company's desired rate of return is 10%. Income is defined as operating income.

What are the respective residual incomes for the North and South Divisions?

	A.	$60,000 and $100,000
	B.	$300,000 and $60,000
	C.	$300,000 and $100,000
	D.	$500,000 and $700,000